PPRuNe Forums - View Single Post - UK Govt proposal for failed airlines to keep going short term
Old 12th Oct 2019, 19:50
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Easy Street
 
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Originally Posted by old,not bold
Hmmm.....I don't agree; in my view there are plenty of ways it could be done acting entirely within UK law. Which law do you have in mind which prevents that?
UK insolvency laws. They have no equivalent of US Chapter 11, which among other things prevents creditors from seizing assets. And UK laws bar directors of companies in administration from giving some creditors (ie stranded passengers) systematic preferential treatment over others, which is what they would be doing by running repatriation operations at a loss.

But don’t take my word for it. The UK Government commissioned a lengthy review into all this just after Monarch’s collapse, as a result of which legislation is apparently going to be put before Parliament in the near future. From page 11, paragraph 22 of March 2019's Airline Insolvency Review report:

Delivering repatriation protection will require a number of improvements to the current legislative and regulatory arrangements for UK airlines:

● To ensure an insolvent airline can continue flight operations for a short period after entering administration so that passengers can be repatriated using the airline’s own aircraft, people and systems. This will require primary legislation to introduce a Special Administration Regime for airlines.

Last edited by Easy Street; 12th Oct 2019 at 20:37.
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